The HF Markets Group announced the HotForex brand is now licensed and regulated by the Capital Markets Authority (CMA).
HFM Investments is now part of the six non-dealing online foreign exchange brokers licensed by CMA.
The dealers are gaining traction in the market with the attractiveness of offshore investment options that offer opportunities and diversification on top of traditional asset classes.
Mauritius-based online currency trader HFM Investments Limited has launched its operations in Kenya under the HotForex brand, becoming the sixth company to set up shop in Nairobi.
The HF Markets Group announced the HotForex brand is now licensed and regulated by the Capital Markets Authority (CMA).
This allows it to onboard individuals and institutional customers to trade forex and contract for differences (CFD), a financial contract that pays the differences in the settlement price between the open and closing trades.
HFM Investments is now part of the six non-dealing online foreign exchange brokers licensed by CMA including Exinity East Africa Limited, EGM Securities (trading as “FXPesa”), SCFM (trading as “Scope Markets”), Pepperstone Markets Kenya, and Windsor Markets.
The dealers are gaining traction in the market with the attractiveness of offshore investment options that offer opportunities and diversification on top of traditional asset classes like real estate, stocks and government bonds.
While online forex offers high returns, it also comes with major risks of loss, making it suitable for sophisticated and high net worth clients.
“This new license marks a new milestone in the steady growth of HotForex, which has become a truly global and multi-regulated brand over the past ten years,” the company said.
“It also demonstrates the continued success of the HF Markets Group, made possible by our clients, partners and the dedicated efforts of the HotForex team to offer the safest trading environment possible to millions of traders around the world.”
Kenyans are increasingly gaining knowledge of opportunities abroad through foreign players setting up subsidiaries in Nairobi.
Online forex dealers operating from Cyprus, the UK, Dubai and Mauritius are targeting Nairobi to tap into the regional markets given Kenya’s robust regulations that has brought sanity in online forex trading.
CMA move to weed out fake websites and licensing of the six companies has given inventors an opportunity to tap into offshore markets safely which has seen increased participation of local traders, as well as brokers, joining the fray to link their customers to opportunities abroad.
Sterling Capital recently signed a deal with licensed online forex broker EGM Securities to tap into global stocks, as well as other asset classes such as indices and commodities like gold and oil.
